I AGREE with Andy Macdonald, (Letters, September 17), in his call for reforms to the banking industry, and an end to banking subsidies.

But we need to end the biggest banking subsidy of all, the banks’ right to create money. Most people believe that the government creates all the money in our economy. But the truth is 97 per cent of the money was created by banks, as loans, with interest.

This is not the notes and coins that we all refer to as money, but just numbers on computers. Money literally created out of nothing.

The creation of the money should not be left in the hands of private profiteering banks.

This privilege should be placed in the hands of a publicly accountable body.